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How do DIY customers

buy online and offline?


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Contents
Introduction Findings / Solution
- Relevance of online channels for
Background DIY customers
- The DIY market
- Opportunities for social media
- Market share
- The online and instore touch points
- Market issues - how small stores
for DIY
are challenging the big boxes
- How a multichannel approach can
- Summary of DIY product range
benefit business

Challenge Summary
- The DIY customer buying cycle
- Multichannel DIY lessons
- Case study – what we can learn
from Screwfix About Sagittarius
- The Talent
- Why a white paper?
Introduction
Our white paper aims to discover if it is possible to
source everything you might need for any DIY project We’ve conducted a review of offline
all in-store or all online? How DIY customers are
inspired and engaged to purchase products?
and online shopping channels and
We wanted to find out how the DIY industry is serving
its customers and if the industry is keeping up with the
some of the themes include:
challenges of online channels. And with the ever • How do you customers buy DIY products?
growing digital savvy consumers are the online • What factors influence shopping habits online
channels becoming more dominant? and offline?
• Who is serving DIY customers best?
• Where do buyers get more inspiration to choose
and buy DIY products?
• How is the DIY market becoming more
multichannel?
Background The DIY market
DIY was one of the worst hit sectors in 2012 in the UK. This was largely due to poor weather in
spring and summer, compounded by the sector’s overall underperformance.
However, research conducted by Verdict and SAS found DIY and gardening was retail’s best
performing sector in 2013. Indeed, ‘Think with Google’ noted in the US the number of DIY
shoppers was said to have increased due to the economic downturn. 38% of Americans
completed or considered a DIY project. And these are the digital savvy consumers, 51% of
which are first-time home buyers.

42.5% 39.9% 34.7% 35.5% 34.8% Source: Verdict


How Britain
Shops 2014: DIY
2010 2011 2012 2013 2014

This chart illustrates the percentage of all UK shoppers aged 16 and


over who regularly shop for DIY. The DIY sector remains weighted
toward older, more affluent shoppers.
Market Share Kingfisher is the market leader in DIY retailing in Europe, via the dominant brands of B&Q in the
UK and Castorama in France and Poland. It is the third largest DIY group in the world.

Percentage of active DIY shoppers regularly


visiting each retailer (%) 2010 - 2014

Visitor 2010 2011 2012 2013 2014

B&Q 77.3% 74.5% 75.4% 74.6% 74.9%

Homebase 36.7% 35.2% 34.7% 34.5% 31.8%

Wickes 19.8% 19.3% 21.5% 23.9% 23.9%

Wilkinson 13.3% 14.5% 14.5% 13.3% 11.4%

• B&Q (UK market leader) and Homebase • B&Q is a relatively mature business
are known as the ‘big boxes’ and expanded and, with so many big out-of-town
their range to include gardening in stores, it may have to downsize its
2011/2012, smaller providers are Screwfix physical footprint as the DIY market
and Toolstation. becomes more multichannel.

• Big box providers find it more difficult to • Homebase (95%, online 5 %), growing
adapt flexibly to the new online world rapidly, annual increase of 25%.
because they have higher fixed costs, but
B&Q is the most visited online Homeware
and DIY retailer.
Market Issues
How small stores are challenging the big boxes
In DIY, specialists are facing more competition, forcing them to diversify into new
categories, exposing them to new rivals, especially in kitchens and bathrooms.

+10% Independence +19% Amazon

B&Q’s profits increased more Independent DIY stores, mail Consumers are spending The biggest threat to the big box
than 10% to £238m for year order, non-specialist retail more online in DIY because of providers is Amazon who is
2011/12 with Kingfisher (Argos, Amazon, Tesco, the online vs price difference wading into the online space, big
claiming the success of its Wilkinson’s), online (increasing). +19% in 2012 for a cross-category retailer, growing
transformational plan power tool. fast in DIY small, nimble, low-cost
‘Delivering Value’ making the pure-play specialist.
business stronger.
Summary of DIY Product Range
DIY products tend to be bulky, low margin, slow-selling
with the need for advice to support the purchase. Before
broadband there was limited technology and limited
home delivery has made DIY a follower not a leader
However, there is an evolving product mix / brand mix in
2013/2014 (mostly for electrical, garden tools and
equipment, paints and garden decor products).
31.7% very good choice with lots
of ranges and product lines

Other products include homeware, plants and home


décor. In 2014 the range of products remains pivotal to
21.3% Always able to provide
what I want

8.1%
DIY shoppers, closely followed by convenience, price,
service and quality. The products suit my
own tastes

3.8% Has interesting and


exciting products

3.1% Good choice of own


label products
Market Share Customer Buying Cycle
Realise Problem or Need Awareness
• Use Keywords that describe problem Inspire customers to recognise the need to purchase
Search for
• Don’t yet understand solutions Whether they are a first time buyer or have a specific home improvements
project, evidence suggests the internet plays a significant role in initiating and problem or need
• Looking to be educated
inspiring that need to purchase. Buyers will always do their homework about a
• Commitment is low provider before engaging in a purchase.

Perform Research Educational


• Learn about how to solve problem Research purchase options, evaluate alternatives Begin to
• Under what’s available The consumer will then search further to identify alterative solutions to satisfy their understand
• More educated questions need. Search and online video play a major role in in DIY shoppers purchase solutions
• Commitment is low to medium journey. A Google Survey revealed 1 in 4 researched a specific DIY brand.

Establish Buying Criteria Validation


• Establish ‘must haves’ There is a trend for DIY consumers to complete research instore then order Prioritize what’s
• Under what’s available online. Stores are judged by their product quality, layout, facilities and ambi- most important
• Don’t want to be missing anything ence. The Danish 10-4 DIY chain reports that consumers expect them to in a solution
• Commitment is medium high deliver building materials, even in very small quantities.

Evaluate Vendors Sales


• Narrow down vendors Post-purchase evaluation/ bought the product Evaluate Vendors
• Compare vendors There is a growing trend to use social media to enjoy the purchase and seek out based on buying
• Looking for trials / demos affirmation that they have made the right purchase choice. criteria
• Commitment is high
Screwfix multichannel DIY delivery
• Website - has well over a million unique visitors each week;

B&Q has a good opportunity to grow the group’s share and it has a live stock-check system.

of the ‘trade’ market, mainly via the fast-growing • Mobile - its app has proven popular and mobile traffic is
Screwfix chain in the UK.
growing significantly year on year, it was shortlisted for the

Screwfix is the UK's largest multi-channel supplier of best mCommerce site in 2013.
trade tools, plumbing, electrical, bathrooms and
• Social - 65,000 fans in two years, 40% Facebook growth in
kitchens. With over 30 years’ experience in the industry,
they despatch tens of thousands of parcels every week 2011; in 2014 they have 108,000 likes and Screwfix

for next day and weekend delivery to tradesmen, community forum; they have 21,500 followers on Twitter.
handymen and serious DIY enthusiasts all over the UK.
• Click and collect – allows shoppers to order and collect just

Kingfisher’s trade brand Screwfix has a strong five minutes later.


reputation and benefited from investment in
• Online order – next day delivery with tailored delivery
multichannel, including catalogues and online ordering.
It has expanded from one to 300 stores in eight years services and prices depending on location.
and as it has grown, it has managed to keep a clear
• Video – Screwfix has an official YouTube channel where
focus on who its customer is. Revenues increased 40%
in five years (2007 to 2011). there are 724 videos uploaded with over 1,600 subscribers ,

there are product how to demos, installation, buyer, product

feature videos and new content is added regularly.

Screwfix has two-thirds static


business and one-third online.
Findings/Solution
• eMarketer recognised digital channels • Digital buyers will use generic DIY
stimulates research for DIY customers, words or familiar brands to discover
inspiring them what to do and it could take content to fulfil their needs.
be up to 6 to 18 months.
• Interactions based around social
• Customers should be able to have online networks or content have become
access to stock availability to click major touch points; Pinterest is a
and collect. perfect plan for home improvement
and design, playing heavily to
• Most website users prefer to use the push out to commerce.
‘search function’ to look for products,
followed by ‘browsing products’ and using
the ‘main navigation’.

• Within the online purchase journey, it is a However, online penetration for home or DIY retailers remains low compared to
financial reward which exerts the biggest other sectors. Sometimes, the hazardous nature of many products makes
influence over the likelihood of someone home delivery too expensive. Only 2.25% of DIY sales were via online in 2011.
committing to buy. Globally, over two fifths DIY retailers are traditionally behind the curve when it comes to ecommerce.
(43%) say that this has a positive impact. Online sales account for 5% of total sales at Homebase and represent an even
smaller proportion of B&Q’s sales (2013).
Opportunities for Social Media
In the retail sector 4 in 10 social media users have
purchased an item online or in-store after sharing or
favoriting it on Twitter, Facebook or Pinterest (2013).

2/5
Social media has a strong potential to drive purchasing
patterns both instore and online.

For DIY retailers to make effective use of social media as a


market channel it is critical to understand firstly the buyer

consumers share
demographics and secondly which social media network
attracts those customer segments. In 2014 the DIY sector
remains weighted toward older, more affluent shoppers -

like or favourite
59.4% DIY shoppers are male, 40.6% female.
Opportunities for Social Media
From the Verdict data, 89.5% are aged 35-54 and 43% of How to maximise DIY presense on social networks
Twitter users are between 35-54 years old. Pinterest has a
strong female bias (83%) and 61% follow DIY and crafts.
There’s an opportunity to visually inspire the segment through
social media to buy a range of DIY products. However, be
mindful of the importance of customer segmentation as 61% of
UK social media users never visit Pinterest, so it has a niche
interest, but if you target those with a focused interest they are Content Culture
more likely to purchase. Speak to the Match the
hottest topics Your Brand community’s
In 2014, 63% of people turn to Pinterest for DIY and Crafts,
34% go to Twitter and 29% go to Facebook. People who get
Presense tone
excited by DIY projects have their own network culture; to
engage them appropriately it is critical to offer the right content
that presents the hottest DIY topics and trends. If you
understand the content, culture and product categories that
make up your customers’ experience on each social platform,
Category
you maximise your customers’ engagement and potential to
Sell in relevant
purchase. categories
Profile of DIY Shoppers 2014
27.8 %
This chart illustrates the percentage of all UK shoppers in each Male FeMale

42.2%
demographic group who regularly shop for DIY

49.1%
42.9% 48.1%
40.4%
32.5% 36.2%
35.3%
29.2%
22.8%
14.1%

16-24 25-34 35-44 44-54 55-64 65+ AB C1 C2 DE

However, research shows social media usage varies dramatically across different retail Source: Verdict How
product categories and different demographics. So by studying DIY customers’ usage Britain Shops 2014: DIY
patterns it's possible to set a DIY social strategy. There are opportunities to identify
certain overarching patterns to give a picture of which DIY customers can be found
where online.
The Online and Instore Aim to establish a fully interactive, cohesive customer experience to fully

Touch Points for DIY


embrace a multichannel offering. This can only enhance and inspire buyers
to purchase products more easily on their terms, online or instore.

reviews mobile payment Social sharing


Online Click and
Social media ads Price Comparisons collect Forum

m-commerce Stock Check Ecommerce How to videos Demo Vids Social sharing

ppc blog online only items social updates


Follow up Blog Mobile Surveys
Email Click to call planning
emails
Online ads webinars click to chat FAQ

awareness consideration Purchase Retention Advocacy


offline Word of Mouth fax Newsletters Loyalty
Programs
Instore learn about contact call
radio, tv rewards
& print instore centre
events/demos Catalogues Discounts &
next day delivery Incentives
Magazine How to Contact call Sales assisted
guides centre
coupons services
Promotions
extended Shopping lists Payment
packaging
pr In-store
navigation/alerts
How a Multichannel Approach
can Benefit Business
• De-clutter the stores to improve visibility and availability.

“Retailers such as B&Q and Homebase are • Move more stock into back rooms.
• Introduce kiosks to showcase the entire range.
established authorities in DIY – and they need to
• Allow customers to find and order products more easily.
capitalise on this to deliver online advice, knowhow
• Equip managers with tablets using the same kiosk software so
and service that pureplays such as Amazon cannot.” they can spend more time on the shop floor helping customers.

John Mercer, European Retail Analyst, MINTEL • Update ageing PC hardware with lower cost thin
client computers.

Until recently, it was fairly easy to separate online activity from other • Roll out software that allows customers to customise their own
activities. There was a clear pattern to how people used the internet. kitchen order online, at home or with the help of staff in store.
Planning involves a more integrated business. A website should not be • The B&Q superstores are using online not just as a sales
separate to instore; many DIY providers have made that mistake. channel, but as a means to drive footfall into stores, especially
through reserve and collect facilities.
For the DIY sector specifically, show rooming comes in to play, but
mobile plays a big role in this too. Right sizing stores - adapting store
formats (B&Q has large, big and far too big), this could be inspired by
responsive website design

B&Qs strategy is about providing a consistent customer experience


through omnichannel marketing. There are opportunities to update
instore technology, by gaining inspiration from the online experience.
Summary - Multichannel DIY Lessons
This white paper has found that consumers do not fully rely on sourcing everything
they might need for a DIY project all in-store or all online. DIY providers need to bridge
the digital technology gap by providing a consistent offer to the customer with the
same information, same experience whether they place an order in store, online, via a
kiosk or if they call the contact centre.

• The DIY online shop window must • Keep a clear focus on the DIY customer, • If DIY retailers improve the online
support what there is in-store and the know their preferred channels in the shopping experience it will provide the
right products are recommended, this buying process to get personal. customers with a sense of trust and
needs to support the phenomenon of credibility, this represents a huge
‘reverse showrooming’ for customers • Some retail brands report 30 to 40% of opportunity to reduce shopping cart
who browse online and shop offline. traffic to their website comes abandonment and retain
from mobile devices, but Sitecore loyal customers.
• Instore and online need to work in research found 46% of Business
harmony - consider what’s the benefit of to Business marketers rate their website • Adapt to changing trends and
a virtual product when they can experience on mobile devices as ‘poor’ demographics; older shoppers will
experience the real thing - online and or ‘very poor’. increasingly become an important
instore must be aligned. demographic to DIY retailers,
particularly online.
Summary - Continued

improve the mobile experience


offer advice and knowhow
• The ‘Do It For Me’ trend marks a shift in • Lack of traction of video content can be
• Do more to provide staff with technology
behaviour patterns; for example a the result of poor or absent functionality,
that could make a significant contribution
growing proportion, particularly women rather than a lack of buyer interest to
to not only sales and customer service,
will continue to select and buy products engage with this medium.
but also to staff motivation
such as paints but will employ a and confidence.
handyman to do the hard work. • Today’s DIY retailers need to
understand how both video and social
• Stores can become convenient collection
• Businesses should segment their media drives purchasing among their
points or as a showroom where they can
prospects and customers by profitable customers and of their products; focus
gather information before
size and location and this data needs to on customers whose sharing indicates
ordering online.
be leveraged effectively. they are actively researching high-value
or recurring DIY purchases.
• Capitalise to deliver online advice,
knowhow and service that
Amazon cannot.
Summary - Continued lifetime
customers
Until recently, it was fairly easy to separate online engage
activity from other activities. There was a clear
nurture
pattern to how people used the internet.
Planning involves a more integrated business.
optimise
Use market
A website should not be separate to instore;
align intelligence
many DIY providers have made that mistake. Connect
radiate Focus online and
and
predictions
For the DIY sector specifically, show Initiate Use search on the offline data
to anticipate
customer for real-time
rooming comes in to play, but mobile Align with analytics to
the needs of
Mobile site execute online and 1:1 dialogue
plays a big role in this too. Right sizing Basic site
multichannel
the DIY
Share on objectives optimisation instore across
stores - adapting store formats (B&Q in harmony customer
social channels
has large, big and far too big), this with instore
networks
could be inspired by responsive experience

website design

B&Qs strategy is about providing a


consistent customer experience awareness consideration Purchase
through omnichannel marketing.
There are opportunities to update DIY multichannel customer expectation model
instore technology, by gaining
inspiration from the online experience.
About Sagittarius
The Talent
Our experienced team
includes digital and
marketing strategists,
creatives (offline and
online), web developers,
producers, account
managers, project Paul Stephen Nick Towers Josh Whiten
managers, marketers and CEO Managing Director Digital Marketing Director
we have over 280 years
combined experience.

Richard Brisley George Clark Sarah Dennis


Lead Server Side Developer Lead Client Side Developer Marketing Manager
Why a Whitepaper?
Sagittarius has launched a series of white papers to help create
awareness of new market trends and reveal our best kept
secret insights.

We identify and define emerging demands in the market and


share our thoughts to help decision-makers select the right
solution for their ever-changing needs.

Our white papers aim to unpack complex problems making


them simple all supported by trustworthy evidence-based
research.

We're keen to share from the lessons we have learnt in


business for over the past 30 years and feedback continues to
be invaluable to help shape and define future white papers.
Get in Touch
If you would like to find out more about the DIY sector then
please contact Sagittarius on:

Sagittarius
36 High Street, Ashford, Kent,
TN24 8TE, UK
01233 467800

All Rights Reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any

form by any means, electronic, mechanical, photocopying, recording or otherwise, without the

prior permission of the publisher, Sagittarius.

The facts of this report are believed to be correct at the time of publication but cannot be

guaranteed. Please note that the findings, conclusions and recommendations that Sagittarius

delivers will be based on information gathered in good faith from both primary and secondary

sources, whose accuracy we are not always in a position to guarantee. As such Sagittarius can

accept no liability whatever for actions taken based on any information that may subsequently

prove to be incorrect.

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